The Scottish Government

1. Portfolio/Number/Name:DG Environment / 2 / Rural Payments and Inspections

2. Programme/Activity:

Rural Payments and Inspections Administration Costs

The Rural Payments and Inspections Administration Costs budget is used to carry out inspections on farms to ensure compliance with EU and national legislation. It also includes administration and development costs associated with making payments to CAP pillar 1 and pillar 2 claimants.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0.7

2.2

3.7

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

Through business process changes and improved IT processes, expenditure on rural payments and inspections will be reduced whilst the number of farms inspected and claimants paid will remain the same or increase.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

In order to deliver this efficiency improvement, the project on improving specification of requirements needs to be completed and there needs to be successful adoption of the latest technology for programme delivery.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

The budget line includes the ongoing development costs associated with the delivery of rural payments and inspections.

9.1 What are the inputs that will be measured?

Expenditure on rural payments and inspection administration costs.

9.2 What are the outputs that will be measured?

Number of farms inspected and claimants paid.

9.3 What is the baseline for inputs and outputs?

The baseline for inputs is 2007-08 expenditure on rural payments and inspection administration costs. The baseline for outputs is the number of farms inspected and claimants paid in 2007-08 as well as the 2007-08 budget for CAP pillar 1 and 2 payments (£600m+).

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

Performance on delivering payments on time and on avoiding disallowance will be monitored to ensure quality is not compromised in delivering these payments.

11.1 What are the arrangements for monitoring the delivery of efficiencies?

Expenditure on rural payments and inspection administration costs are monitored monthly against the profiled spend for the year. Payment performance is also monitored to ensure that the quality of service is not compromised.

12.1 What are the arrangements for reporting the delivery of efficiencies?

The delivery of efficiencies will be reported to the Director of Rural Payments and Inspections Directorate on a quarterly basis.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

The delivery of efficiencies are not dependent on legislation but any changes resulting from the CAP Health Check or to the RDR may impact on the delivery of these efficiencies.

14.1 How are the efficiencies released from improvement activity being used to improve services?

This efficiency was assumed as part of the allocation made by the Scottish Executive to the Rural Payments and Inspections Directorate. This freed up resources for Ministers to allocate to their priorities.

1. Portfolio/Number/Name:DG Environment / 6 / Scottish Natural Heritage (SNH)

2. Programme/Activity:

Cash releasing savings to be identified through business process improvement work, co-location and shared services and rationalisation of asset base.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

1.27

2.55

3.82

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

Richard Wakeford and Chief Executive of SNH

5. Project Manager

Director of Strategy & Communications

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

Cash-releasing efficiencies will be gained through active vacancy management, either through redeployment or non-filling of posts when vacant. SNH has a Business Process Improvement Programme in place. The following projects are currently in progress or will be undertaken within the next three years to deliver improvements to current services.

• Managing Research
• HR Management Information System;
• Business Planning & Performance Reporting
• e-Procurement
• Review of Planning Casework
• Site Condition Monitoring database
• Grant application processing

SNH will continue to engage with other public sector bodies, particularly in the SEARS family to seek opportunity for shared services - in co-location of organisations, shared procurement and service delivery of front-line and back office functions. Other collaborative approaches are being pursued with SNH taking the lead in enabling efficiencies such as:

• property condition survey works and planned preventative maintenance programme for both SNH and potentially FCS.
• Shared contract for training
• Shared vehicle fleet provision
• Information systems eg. helpdesk and WAN

Following on from the SG review of publicly owned/leased land and buildings, SNH will review its asset base to assess opportunities for rationalisation and efficiencies.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

SNH will adopt formal programme management of the Projects for our contribution to EGP that will report to our Senior Management Team and Board as appropriate. Project management will adopt existing and well-established EGI governance practices, already acknowledged as Best Practice by the SG EGI Team.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

Business Process Improvement projects listed above are not being pursued on efficiency grounds alone and therefore the development costs associated with each will not be netted off.

There will be no redundancy cost associated with the delivery of the efficiencies, with salary cost reductions being achieved through active vacancy management.

9.1 What are the inputs that will be measured?

Costs, people, procurement, assets

9.2 What are the outputs that will be measured?

Delivery of the key targets in SNH's Corporate Plan at a reduced cost.

9.3 What is the baseline for inputs and outputs?

The 2007/08 budget position as at Spring Budget Review will be used as the baseline. For example, in any service provision, how many staff are required, what is the cost, what assets are used? The final output will be measured against the 2007/08 output for that service.

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

• Customer/stakeholder surveys
• Key performance indicators (KPIs)
• Review of MOTUs (for shared services) and any other service level agreements

11.1 What are the arrangements for monitoring the delivery of efficiencies?

• SNH's Senior Management Team will own the Efficiency Programme and will receive regular progress reports based on PRINCE methodology encompassing Spend against budget and service delivery against pre-determine standards
• BPI efficiencies will be reported through the BPI Programme Board.
• Co-location projects are monitored through specific joint working groups/project boards e.g. SEARS

12.1 What are the arrangements for reporting the delivery of efficiencies?

An update on SNH's Efficiency Delivery Plan will be reported to sponsor department/EGI team on a quarterly basis. In July and January of each year of the Spending Review 2007 period, SNH will submit updated efficiency delivery plans. SNH will also demonstrate through the monthly performance reports the budget position against outcomes.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

Efficiencies are not dependent on legislation. However, for any efficiencies gained through shared services, structural changes may be required such as co-location of organisation.

14.1 How are the efficiencies released from improvement activity being used to improve services?

This efficiency was assumed as part of the allocation made by the Scottish Government to Scottish Natural Heritage, which freed up resources for Ministers to allocate to their priorities. The 2007-08 budget for SNH in SR07 was 68.2m and the 2008-11 plans are £67.2m/£69.7m/£71.4m.

1. Portfolio/Number/Name:DG Environment / 8 / Voluntary Modulation

2. Programme/Activity:

Voluntary modulation refers to the transfer of funds from Pillar 1 of the Common Agricultural Policy to Pillar II focusing on rural development, which provides support to land managers for the implementation of specific measures aimed at improving the competitiveness of Scottish Agriculture, environmental outcomes and strengthening rural communities.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

35.7

38.1

40.2

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

Transfer of resources from Pillar I to Pillar II of CAP via modulation reduces the amount of Single Farm Payment (SFP) received by farmers, but it does not affect welfare benefits delivered by the SFP through GAEC and cross-compliance requirements. This is because GAEC and cross compliance requirements are enforced independently of the amount of SFP paid to farmers.

Financial resources raised from voluntary modulation are allocated to land managers under Pillar II in order that they implement specific measures aimed at improving the competitiveness of Scottish agriculture, environmental outcomes and strengthening rural communities. Thus modulation funds allocated to Pillar II will deliver additional benefits over and above those delivered by GAEC and cross-compliance under Pillar I.

Without modulation, the Scottish Government would need to allocate to Pillar II additional DEL resources equivalent to the amount raised from modulation or else the level of benefits delivered by Pillar II will have to reduce.

Voluntary modulation demonstrates efficiency savings in that it allows delivery of additional environmental and other welfare benefits under Pillar II while at the same time benefits from GAEC and cross-compliance under Pillar I are maintained. To secure the same level of benefits under Pillar II additional DEL resources would be required. However, voluntary modulation frees such DEL resources in order that they can be allocated elsewhere to deliver further public benefits.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

Transfer of a proportion of funds under Pillar I of CAP to Pillar II focusing on rural development, and implementation of the Scottish Rural Development Programme (SRDP).

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

There are no development or redundancy costs associated with the delivery of this efficiency.

9.1 What are the inputs that will be measured?

Amount of funds going to support rural development measures in the SRDP.

9.2 What are the outputs that will be measured?

A set of output indicators has been identified for the various measures in the SRDP and these measure activities that will be directly realised from the programme (see Chapter 12 of SRDP 2007-13 for specific details).

9.3 What is the baseline for inputs and outputs?

Baselines for inputs and outputs for the individual measures are set out in the SRDP document (see Chapter 12 of SRDP 2007-13 for specific details).

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

A set of impact indicators has been identified for the various measures in the SRDP and these measure the benefits of the programme beyond the immediate effects on its direct beneficiaries. (See Chapter 12 of SRDP 2007-12 for specific details).

11.1 What are the arrangements for monitoring the delivery of efficiencies?

Arrangements for monitoring and evaluation will follow the provisions of Articles 77 and 78 of Council Regulation (EC) No 1698/2005 and will utilise the European Commission's Common Monitoring and Evaluation Framework (CMEF). Progress will be assessed against the EU-wide common set of indicators in the CMEF, including those relating to the baseline situation as well as to inputs, outputs, results and impacts of the Programme.

12.1 What are the arrangements for reporting the delivery of efficiencies?

Output and result indicators will be reported annually for the SRDP 2007-13. Impact indicators will be reported at the mid-term and ex-post evaluation stages. Independent evaluators will estimate and quantify the impact.

The annual progress report will include:

• a table including the financial implementation of the programme giving, for each measure, a statement of the expenditure paid to beneficiaries during the calendar year
• the monitoring tables which will include quantitative information based on the common output and result indicators. and
• a summary of the on-going evaluation activities

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

Efficiencies depend on Council Regulation (EC) 1782/2003 and Council Regulation (EC) No 1698/2005 which respectively govern the implementation of the Single Farm Payment Scheme and the Rural Development Programme.

14.1 How are the efficiencies released from improvement activity being used to improve services?

This efficiency was assumed as part of the allocation made by the Scottish Government to the Rural Development Programme. This freed up resources for Ministers to allocate to their priorities.

1. Portfolio/Number/Name:DG Environment / 9 / SEPA

2. Programme/Activity:

• Research , Analysis and other Services
• Other efficiencies from reviews, restructuring and other efficiency activities

The majority of SEPA's efficiencies were planned during 2007/08 to be realised in 2008/09 since SEPA was aware that these levels of efficiencies would be required to meet the costs of SEPA's new Pay Scheme and Job Evaluation Scheme.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0.727

1.455

2.182

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

Cash releasing savings from four main areas:

• Reducing the resources required for carrying out certain functions in SEPA and integrating new duties within current staffing. Staff are therefore not recruited to carry out new and additional duties. This efficiency comes from doing the same with less and freeing up resources for other activities.
• Redesign of the way in which SEPA carries out its recruitment activities. Recruitment will be more targeted through SEPA's website with only 'notice board' type adverts in the national press pointing potential applicants to SEPA's website. Not only will this save on advertising costs, it is also more efficient in that all the information required by applicants can be provided electronically from a single source (e.g. structures, corporate plans etc)
• Better use of SEPA's assets. The redesign of SEPA's office at Whitefriars has enabled the construction of a training suite which will serve all SEPA's central area buildings and reduce the number of more expensive external training facilities used
• Carrying out an efficiency review which considered future options for delivery of the WFD service and Finance services in SEPA. For WFD, this identified a number of operational areas where efficiencies could be gained by doing the same with less resource. In Finance a restructuring will take place from 1 April 2008/09 which, again, will generate efficiencies
• Procurement Savings. SEPA has migrated its wide area network to the new Police National Network Contract which will generate savings for SEPA. In addition, it is anticipated that other procurement savings will be realised.
• Other efficiencies are anticipated from new system, e.g. Agresso (Finance) and other service reviews

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

These actions are already underway and the savings identified will be removed from base budget figures.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

There are no additional redundancy or development costs associated with these activities.

9.1 What are the inputs that will be measured?

• Expenditure on training venues
• Expenditure on advertising
• Expenditure on staff
• Expenditure on support services, in particular Finance Services
• Expenditure on wider area network
• Expenditure on capital and other tenders

9.2 What are the outputs that will be measured?

• Output measured: Reduced expenditure on new duties staff. Performance reporting of activities
• Output measured: Quality and number of applicants for recruited posts. Reduced recruitment advertising costs
• Output measured: Reduced costs for delivery of training and development. Satisfaction measures from attendees
• Output measured: Reduced expenditure on WFD activities. Performance reporting of activities
• Output measured: Quality, accuracy and timeliness of Finance services. Reduced costs of Finance services
• Output measured: Quality and reliability of wide area network. Reduced cost of wide area network
• Output measured: Capital and other tenders provide goods and services to quality and standard required. Reduced cost of tenders

9.3 What is the baseline for inputs and outputs?

2007/08 inputs and outputs.

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

Adherence to service level agreements, performance reporting, staff feedback, applicant research and feedback

11.1 What are the arrangements for monitoring the delivery of efficiencies?

Management performance reporting against target is the main monitoring tool with the baseline being the individual planned efficiency gains expressed as cash equivalents. Where relevant, budget data, applicant numbers, activity data and quality audits will be used to monitor the efficiencies

12.1 What are the arrangements for reporting the delivery of efficiencies?

Performance will be monitored through the production of individual delivery plans which will be reported to the Director of Finance monthly. These plans and the achievement of the plans will then be audited quarterly. Responsibility for delivery rests with individual Directors and overall with SEPA's Corporate Management Team who will receive quarterly monitoring reports from the Directors of Finance.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

No.

14.1 How are the efficiencies released from improvement activity being used to improve services?

Efficiency savings will be directed towards SEPA's frontline operational services

1. Portfolio/Number/Name:DG Environment / 10 / Scottish Fisheries Protection Agency

2. Programme/Activity:

The Scottish Fisheries Protection Agency is an Executive Agency of the Scottish Government. The aim of the Agency is to contribute to the conservation of fish stocks by enforcing UK, EU and International laws and regulations at sea within British Fishery Limits around Scotland and in Scottish ports and as required in international waters.

The Agency's mission is to monitor the Industry's compliance with those laws and regulations through the effective deployment of its ships, aircraft and fisheries Inspectorate and, where breaches are detected, to present cases for prosecution expeditiously to the Crown Office and Procurator Fiscal Service.

The Agency has carried out a review of its activities and the major resources at its disposal and identified three areas where efficiencies will be achieved without impacting adversely on its core business.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

2.61

0.994

1.491

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

(1) SFPA will receive into service in 2008-09 a new purpose built fisheries protection vessel. The existing fleet consists of a number of ageing vessels which were becoming increasingly unreliable and steadily unfit for purpose. The decision has been taken to de-commission one of the current fleet when the new vessel is brought into service. Cash receipts of £1m are expected in 08-09.

(2) SFPA has carried out a thorough review of its coastal operations in which it assessed the levels of fishing activity relative to its network of fishery offices and their associated levels of staffing. The review has formed the basis of a restructuring plan more geared to the changing nature of fisheries enforcement activity and the wider marine management environment. The effective date for the new structure is 1 September 2008 but savings can be realised almost immediately as a number of current vacant positions have been identified as now being off complement. Cash savings of £0.4/0.6/0.6m are expected.

(3) SFPA will receive into service in 2008-09 two new aircraft. These aircraft were commissioned because the existing fleet were ageing and becoming increasingly unreliable and unfit for purpose. The decision has been taken to de-commission and sell both existing aircraft when the new aircraft are brought into service. Cash receipts of circa. £1m are expected in 08-09. In addition, the Agency is currently negotiating with its aircraft operators for a reduced maintenance charge and enhanced maintenance procedures for the new aircraft and will adopt a more target-based approach in its surveillance operations which will allow the Agency to reduce the number of hours flown but maintain operational effectiveness. Cash savings of £0.21/0.23/0.23m are expected.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

(1) The plan is dependant on the new vessel being successfully brought into service and a buyer being identified for the vessel being sold. The Agency is progressing both matters and satisfactory progress is being made.

(2) There are a number of work streams currently underway to re-design job roles / profiles and discussions are due to take place with union officials. These discussions will revolve around revised staffing numbers / shift patterns etc.

(3) The plan is dependent on the new aircraft being successfully brought into service and a buyer being identified for the current fleet. The Agency is progressing both matters and satisfactory progress is being made. Savings to be gained via the revised maintenance procedures will be witnessed through the recorded maintenance programme and audit visits. The reduction in the number of hours flown will be achieved in the tasking of the aircraft from the Agency's HQ.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

(1) & (3) The capital project relating to this efficiency was entered into on primarily operational grounds and as such the associated costs have not been netted off. The other aspects of the efficiency plan concerning aircraft operations are on a non-cost basis.

(2) The re-structuring exercise is primarily borne from a requirement to re-allocate resources to areas in which they will be more effective. An impact of such an exercise will be to release efficiencies i.e. reduced staffing, changing shift patterns. The revised staffing levels will occur in all but one instance (early retirement) through natural wastage.

9.1 What are the inputs that will be measured?

(1) & (3) The assets that have been assessed as being surplus to operational requirements.

(2) The coastal staffing levels and associated costs.

(3) The associated charge incurred by the Agency for the operation of its aircraft surveillance activities.

9.2 What are the outputs that will be measured?

(1) & (3) The cash receipts resulting from the successful sale of the fixed assets.

(2) & (3) A number of key targets associated with these operations that will be closely monitored to ensure that effectiveness is not compromised.

9.3 What is the baseline for inputs and outputs?

(1) - (3) The baseline for the targets is the 2007/08 budget and the breakdown of capital receipts.

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

(1) There are a number of operational indicators that are assessed when evaluating the effectiveness of a vessel. In the case of the new vessel a key indicator will be the effective patrol day (EPD) target as there would be a real expectation that the number of patrol days will increase.

(2) There are a number of operational indicators that are assessed when evaluating the effectiveness of coastal operations these include the % of total tonnage landed, number of catch inspections etc.

(3) There are a number of operational indicators that are assessed when evaluating the effectiveness of an aircraft which includes % hours spent on task.

11.1 What are the arrangements for monitoring the delivery of efficiencies?

(1) - (3) The delivery of the efficiencies will be monitored by Agency staff and reported to the Agency SMB on a regular basis.

12.1 What are the arrangements for reporting the delivery of efficiencies?

(1) - (3) The receipts emanating from the sale will be notified to the Directorate and this and other efficiencies reported through the portfolio manager for the Environment portfolio.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

N/A

14.1 How are the efficiencies released from improvement activity being used to improve services?

(1) - (3) This efficiency was assumed as part of the allocation made by the Scottish Government to the Scottish Fisheries Protection Agency. This freed up resources for Ministers to allocate to their priorities.

1. Portfolio/Number/Name:DG Environment / 12 / Fisheries Research Services

2. Programme/Activity:

Fisheries Research Services (FRS) is the Scottish centre for research on fisheries, aquaculture and the aquatic environment, working to support policy and stewardship of living aquatic resources.

The Agency has carried out a review of its activities and the major resources at its disposal and identified nine areas where efficiencies will be achieved without impacting adversely on its core business.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0.549

1.178

1.767

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

(1) Disposal of FRV Clupea. The FRV Clupea is being replaced as its age makes it increasingly unfit for purpose. Under the Efficient Government programme, sales of surplus assets count as efficiency savings. (Saving: £0.1m//Nil/Nil).

(2) Reduction in communication costs. (Saving: £0.021/0.021/0.02m)).

(3) Effecting savings through reduced costs of chartering vessels and undertaking research work from our own vessels which has previously been chartered. (Saving: £0.05m/Nil/Nil).

(4) Reduction in cost of energy bills. (Savings: £0.05/0.05/0.05m).

(5) More efficient ways of delivering training. (Saving: £0.05/0.05/0.05m).

(6) Reduction in prices charged for service contracts and provision of general supplies. (Saving: £0.08/0.08/0.08m).

(7) Reduction in cost of fuel and travel costs and rationalisation of travel management system. (Saving: £0.094/0.094/0.094m).

(8) Reducing stocks of scientific consumables through introducing just-in-time stock policy. This will result in the use of current stocks without replenishing to same levels, saving on storage space, avoiding obsolescence and interest on working capital. (Saving: £0.035m/Nil/Nil).

(9) Reduction in cost of providing IT hardware. (Saving: £0.069/0.069/0.069m).

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

(1) Securing an appropriate agreement for sale.

(2) FRS' ICT group are constantly educating staff in the best use of communication aids such as email etc. The increased use of email is likely to bring savings in telephone and postal charges.

(3) Ensuring robust procurement and vessel planning processes are in place.

(4) Negotiation of price reduction, wider campaign of environmental issues.

(5) Establishing formally structured and timetabled organisational training plan.

(6) Negotiating fixed price service contracts, discounts, renegotiating contracts, improved contract management, establishing contract for provision of protective clothing - savings can be made as staff are currently purchasing ad hoc equipment rather than through a negotiated contract.

(7) Improved transport management, reviewing representation at meetings, increased use of video conferencing, improved travel management procedures, more efficient use of paper and resources etc.

(8) Negotiating with suppliers and agreeing appropriate delivery schedules.

(9) Utilisation of wider SG contract.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

(1), (3), (5) & (8) Costs are not being netted off as this is not solely an efficiency saving.

(2), (4), (6), (7) & (9) No.

9.1 What are the inputs that will be measured?

(1) Value of vessel.

(2) Cost of telephone and postal charges.

(3) Chartering costs.

(4) Cost of energy (gas/electricity).

(5) Training costs.

(6) Cost of supplies and services.

(7) Cost of fuel (petrol/oil) and travel, time reductions, and reduction in paper usage.

(8) Stock holding and storage space.

(9) Cost of IT hardware.

9.2 What are the outputs that will be measured?

(1) Value acquired for vessel.

(2) - (9) Cash released to be allocated.

9.3 What is the baseline for inputs and outputs?

(1) - (9) 2007-08 baseline value.

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

(1) - (9) Maintenance of FRS achievement against agreed deliverable targets and milestones.

11.1 What are the arrangements for monitoring the delivery of efficiencies?

(1) - (9) Quarterly monitoring through FRS balanced scorecard.

12.1 What are the arrangements for reporting the delivery of efficiencies?

(1) - (9) To portfolio manager and Marine Directorate via FRS Agency Board.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

(1) - (9) N/A

14.1 How are the efficiencies released from improvement activity being used to improve services?

This efficiency was assumed as part of the allocation made by the Scottish Executive to FRS. This freed up resources for Ministers to allocate to their priorities.

1. Portfolio/Number/Name:DG Environment / 14 / Withdrawal of funding from the Hannah Research Institute (HRI) at the end of 2005-06.

2. Programme/Activity:

Research , Analysis and other Services

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0

1.7

1.7

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

In 2005-06 SG withdrew research funding of £2.4m p.a. from HRI because HRI had failed to respond to the recommendations of 2 major peer reviews and its research outputs were no longer relevant. During a 3-year transition which ends in 2008-09, under which 2 Universities are receiving funding of £1.7m p.a. to maintain parts of HRI research, the original funding is becoming free for reinvestment and that is the measure of the efficiency saving.

As a consequence of withdrawing funding from HRI the SG has not suffered any loss of usable outputs across its research programmes, and at the conclusion of the transition period the entirety of the funding released will be available for reinvestment.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

None - these have been taken already.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

Yes.

SG is funding the redundancy costs of HRI staff including annual compensation payment in lieu of pensions. This amounts to £5.6m in total of which £4.2m will have been paid by the end of 2007-08. However, this project was not pursued on efficiency grounds and the costs associated with the efficiency have not been netted off.

9.1 What are the inputs that will be measured?

Financial inputs.

9.2 What are the outputs that will be measured?

Research outputs.

9.3 What is the baseline for inputs and outputs?

Inputs: £2.4m is in the 2007-08 baseline; Outputs: see 9.2 above.

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

Normal QA processes, including peer review, will be applied.

11.1 What are the arrangements for monitoring the delivery of efficiencies?

Research activity is assessed though peer review

12.1 What are the arrangements for reporting the delivery of efficiencies?

This will be done within Rural and Environment Research and Analysis Directorate.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

N/A

14.1 How are the efficiencies released from improvement activity being used to improve services?

This efficiency will free resources for allocation to the Portfolio's scientific research priorities.

1. Portfolio/Number/Name:DG Environment / 15 / Rowett Research Institute ( RRI) merger with the University of Aberdeen (UoA).

2. Programme/Activity:

Research , Analysis and other Services

Within the RAE portfolio, Rural and Environment Research and Analysis Directorate (RERAD) commissions research from RRI under a 5-year programme (2006-07 to 2010-11) at resources cost of £11.9m p.a. comprising £9.9m cash and £2.0m non-cash for capital charges.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

2.0

2.0

2.0

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

RRI is planning to merge with UoA early in 2008-09 to achieve scientific research synergies. Under the merger RRI would become a wholly-owned subsidiary of UoA and form a new Institute of Nutrition and Health. It would undertake research aimed at predicting diet-related disease susceptibility and providing evidence-based strategies for disease prevention. As a consequence of the merger RRI will be reclassified from "public sector" to "private sector". As such the cost of commissioning research from RRI will fall outside the RAB boundary and RERAD will no longer have to make financial provision for non-cash capital charges. This will release provision for cash expenditure. The outputs from the research programme will be unaffected.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

To facilitate the merger by providing non-recurring financial support, including for capital investment.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

RERAD is likely to provide non-recurring financial support, including for financial support to help bring about the merger. However, the efficiency described at 7.1 above is a by-product of the merger.

9.1 What are the inputs that will be measured?

Financial inputs.

9.2 What are the outputs that will be measured?

Research outputs will be assessed mid-programme and at the end of the 5 years. The outputs will be the same irrespective of whether the merger goes ahead.

9.3 What is the baseline for inputs and outputs?

Inputs: £11.9m is in the 2007-08 baseline; Outputs: see 9.2 above.

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

Normal QA processes, including peer review, will be applied

11.1 What are the arrangements for monitoring the delivery of efficiencies?

Finance Directorate has confirmed that the non-cash DEL provision released can be reallocated as cash provision

12.1 What are the arrangements for reporting the delivery of efficiencies?

This will be done within RERAD.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

N/A

14.1 How are the efficiencies released from improvement activity being used to improve services?

This efficiency will free resources for allocation to the Portfolio's scientific research priorities.

1. Portfolio/Number/Name:DG Environment / 17 / Forestry Commission Scotland

2. Programme/Activity:

Forestry Commission Scotland controls a large forest estate on behalf of Scottish Ministers. Since the estate has been brought together in a piecemeal approach since 1919 there are bound to be some areas that are not delivering as highly on the Scottish Government objectives as others. An exercise has been undertaken to analyse every woodland on the estate and score them against meeting SG objectives. We are now planning to sell those assets delivering least against the SG objectives and reinvest the income on buying land and planting with trees that better meet Scotland's needs. Although our plan is to sell around £15 million p.a., this will depend on market conditions and also our ability to purchase and plant appropriate land using these released funds.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

10

10

10

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

Paul Snaith

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

The improvement relies on analysis of the whole forest estate to identify those areas least able to deliver the SG objectives. Successfully selling those assets will create the efficiency.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

Produce list of areas for sale, work up details, identify any encumbrances, market and sell assets.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

No.

9.1 What are the inputs that will be measured?

None.

9.2 What are the outputs that will be measured?

Value of land sold

9.3 What is the baseline for inputs and outputs?

Zero.

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

N/A

11.1 What are the arrangements for monitoring the delivery of efficiencies?

Monthly report from Forest Enterprise, our delivery Agency.

12.1 What are the arrangements for reporting the delivery of efficiencies?

Business Monitoring System and Annual Report and Accounts.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

None.

14.1 How are the efficiencies released from improvement activity being used to improve services?

Resources will be used to purchase areas of land and plant with trees to better meet SG objectives and programmes, such as Climate Change.

1. Portfolio/Number/Name:DG Environment / 19 / Royal Botanic Garden Edinburgh ( RBGE).

2. Programme/Activity:

Research, Analysis and Other Services. RBGE is working to meet Ministers' targets for Efficient Government. It will aim to achieve them primarily by securing co-funding for research projects, maintenance and utilities savings, and more efficient use of manpower.

3. Efficiency

3.1 Current target; £m

2008-09

2009-10

2010-11

Cash

0.238

0.476

0.714

3.2 Efficiencies delivered; £m

2008-09

2009-10

2010-11

Cash

Time

4. Accountable Officer for delivery

5. Project Manager

6. EGDD Portfolio Manager

7.1 What is the efficiency improvement? How will the efficiencies be made?

Co-Funding: RBGE will secure co-funding from other research funders towards the cost of its projects thereby releasing SG grant-in-aid for deployment on additional activity.

Maintenance and utilities: improved working practices.

Manpower: staff timed deployed more cost effectively.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

Co-Funding: RBGE needs to ensure that it obtains co-funding from other funders and makes improvements to manpower, maintenance and utilities practices.

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

No.

9.1 What are the inputs that will be measured?

Co-Funding: the amount of co-funding secured in each year.

Maintenance and utilities: expenditure.

Manpower: expenditure.

9.2 What are the outputs that will be measured?

Maintenance and utilities: number of reactive repairs and energy consumption.

Manpower: man hours deployed.

9.3 What is the baseline for inputs and outputs?

Co-Funding: The baseline will be the amount of gross expenditure planned for new research projects.

Maintenance and utilities: 2007-08 data.

Manpower: 2007-08 data.

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

Co-Funding: The quality should not be affected because RBGE will receive the requisite amount of grant but it will come from more than one source.

Maintenance and utilities: 2007-08 service level.

Manpower: 2007-08 service level.

11.1 What are the arrangements for monitoring the delivery of efficiencies?

RBGE management process for each project.

12.1 What are the arrangements for reporting the delivery of efficiencies?

RBGE management process for each project.

13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved.

N/A

14.1 How are the efficiencies released from improvement activity being used to improve services?

These efficiencies were assumed as part of the allocation made by the Scottish Government to RBGE. This freed resources for Ministers to allocate to their priorities.